U.S. futures higher ahead of PPI, manufacturing data; Dow Jones up 0.44%

Investing.com - U.S. stock futures pointed to a higher open on Thursday, ahead of U.S. data on producer price inflation and manufacturing activity amid sustained concerns over the euro zone’s debt crisis.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a rise of 0.44%, S&P 500 futures signaled a 0.50% increase, while the Nasdaq 100 futures indicated a 0.39% gain.

Sentiment remained under pressure despite stronger-than-expected investor demand at a Spanish bond auction earlier.

Investors were jittery as last Friday’s European Union summit failed to result in any decisive measures to tackle the debt crisis in the region, sparking fears over mass ratings cuts across the euro zone.

Shares in Avon Products surged 5.08% as the company is looking for a new chief executive to replace Andrea Jung, who lost investor confidence after a series of problems, including a federal bribery probe and weak sales in key international markets.

Pharmaceuticals were also sharply higher as Vertex Pharmaceuticals jumped 6.56% and Teva climbed 1.33%, while Merck & Co advanced 1.63%. 

On the downside, Aetna declined 0.83% although the third largest U.S. health insurer raised its estimate for 2011 and 2012 operating earnings per share and said it bought back 40 million shares through December 9 this year.

Dynegy Holdings, a unit of energy producer Dynegy Inc, saw shares tumble 8.09% as it entered into a settlement with the Public Service Enterprise Group that had filed for dismissal of the company's bankruptcy motion. Public Service Enterprise Group was down 1.40%.

Financial stocks were also broadly lower as shares in Citigroup plunged 3.16% and Goldman Sachs dropped 1.88%, while Bank of America tumbled 1.69%.

The Wall Street Journal reported on Wednesday that U.S. banks are demanding that the new Consumer Financial Protection Bureau give up its right to sue over certain flawed mortgage originations in exchange for their participation in a multibillion-dollar settlement of alleged foreclosure abuses.

Elsewhere, shares in Lam Research Corp fell 1.74% after the company agreed to buy Novellus Systems Inc. for about USD3.3 billion in stock, combining two of the chip-equipment industry’s biggest companies.

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 climbed 0.75%, France’s CAC 40 rose 0.72%, Germany's DAX jumped 1.05%, while Britain's FTSE 100 added 0.58%.

During the Asian trading session, Hong Kong's Hang Seng Index plunged 2.15%, while Japan’s Nikkei 225 Index tumbled 1.7%.

Later in the day, the U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York State.